The market has been relatively balanced with May marking the fourth consecutive month of price increases; however, inventory is steadily building up which is favourable for buyers.
“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics said. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.”
“With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months,” Lis said. “Up until recently, prices were climbing modestly across all market segments. But with rising inventory levels and softening demand, buyers who’ve been waiting for an opportunity might have more luck this summer, even if borrowing costs remain elevated.”
Here's the summary for May:
19.9% ↓ in sales since May 2023 (demand)
19.6% ↓ below the 10-year May sales average
46.3% ↑ in listed properties compared to May 2023 (supply)
19.9% ↑ above the 10-year May listings average
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The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,212,000. This represents a 2.3% increase from May 2023 and a 0.5% increase compared to April 2024.
